Bank Audi published today its non-audited consolidated financial results for the first quarter of 2021. The Bank said in its statement that the “persisting excessive uncertainties arising from a lasting financial crisis for 18 months, amid continuing absence of a clear national recovery plan, is preventing Management from estimating, in a true and fair manner and as per IFRS, the adverse impact of these factors on the Bank’s financial position and equity, which the Bank anticipates to be material”. In addition, the Bank said “a number of measures have been taken to reinforce the Bank’s financial standing, of which most importantly the capital increase completed in 2020 and the sale of the operations in Jordan, Iraq and Egypt and the investment in Syria. As a result, the Central Bank of Lebanon granted the Bank, in May 2021, its approval to increase shareholders’ equity by 20%”. The statement concluded that the “generation of operating surplus was fully allocated to provisions, within an adopted policy of allocation of all profits to provisions until the dissipation of uncertainties”.
After booking $57.244 M in net impairment losses on financial assets, Bank Audi’s net profits stood at zero at end March 2021, after registering 2.822 M in net profits from the Bank’s discontinued operations (net of tax). In terms of the balance sheet, assets fell by 4.044% to $33.998 B from end year 2020; deposits (excluding those from sold foreign units) decreased by 2.255% to $20.937 B; loans (also excluding those from sold foreign units) declined by 8.509% to $5.548 B; and shareholders’ equity dropped by 2.847% to $2.866 B.
Bank Audi’s Financials
USD’000 31-Mar-21 31-Dec-20
Loans to Customers 5,548,990 6,064,578
Customers’ Deposits 20,937,439 21,420,030
Total Equity 2,866,976 2,950,859
Total Assets 33,998,947 35,431,066
Net Income 0 0